NADA Auto Show 2015 concluded in the capital on Monday. Officials of Nepal Automobile Dealers Association (NADA) say the event has helped to accelerate economic activities in the country which had slowed after the April-25 earthquake. NADA has a long-term plan to make Nepal's automobile sector the largest taxpayer of the country.
Related story
Automobile sector in crisis due to import ban
Sujan Dhungana of Republica talked to Anjan Shrestha, vice president of NADA, to talk about Nepali automobile sector. Experts:
The Auto Show 2015 became successful even though it was organized at time when the market was seeing slackness due to the earthquake. When the event dates were announced, political situation of the country was not that good. Despite this, we decided to organize the event and it became successful.
There are some issues that the government must address soon for further development and promotion of automobile industry. High customs duty on some spare parts, hurdles in process to establish automobile assembly plant, weak infrastructures, lack of sufficient vehicle fitness testing center, safe roads and traffic management, among others, are some of the problems that need to be addressed soon. Besides, we have also felt the need of an international standard exhibition venue.
The government should now take auto dealers as partners to development and work in coordination with us to address the afore-said issues.
Auto dealers have long been complaining that customs duty on import of vehicles, and spare parts and accessories is high. What is the government's response in this regard?
Illegal imports of tires, lubricants, spare parts, and other accessories are on the rise as Nepal shares open border with India. The government is losing revenue because of such illegal activities.
Also, it has created problems for automobile dealers as price of illegally imported products is much lower than the legally imported ones. Considering the situation, we have urged the government to lower excise and custom duties on spare parts.
The government has shown some flexibility toward our demands lately.
The government should bring stable policies for the sector as automobile dealers are in the process of opening assembly plant in Nepal itself. We are optimistic that the government will address genuine issues raised by automobile dealers.
Is it possible to start automobile assembly plant in Nepal?
Yes. Some companies have already started preparing for that. It is a good sign for Nepali automobile industry. The promulgation of new constitution has encouraged investors to put more money into their businesses. Once the country enters into the path of economic development, the demand for automobiles will increase significantly. This will encourage dealers to assemble vehicles here itself.
However, the government needs to encourage such dealers by offering them different incentives. The government should announce incentives in a package as the existing incentives are insufficient.
NADA is holding election for new executive committee this Friday. Are you vying for any post?
Yes. I have filed candidacy for the post of president.
